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Cape Verde

Introduction to Cape Verde

The uninhabited islands were discovered and colonized by the Portuguese in the 15th century; Cape Verde subsequently became a trading center for African slaves and later an important coaling and resupply stop for whaling and transatlantic shipping. Following independence in 1975, and a tentative interest in unification with Guinea-Bissau, a one-party system was established and maintained until multi-party elections were held in 1990. Cape Verde continues to exhibit one of Africa's most stable democratic governments. Repeated droughts during the second half of the 20th century caused significant hardship and prompted heavy emigration. As a result, Cape Verde's expatriate population is greater than its domestic one. Most Cape Verdeans have both African and Portuguese antecedents.

Government

Capital:

Praia

Independence:

5 July 1975 (from Portugal)

National holiday:

Independence Day, 5 July (1975)

Economy

Economy overview:

This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, with commerce, transport, tourism, and public services accounting for 72% of GDP. Although nearly 70% of the population lives in rural areas, the share of agriculture in GDP in 2001 was only 11%, of which fishing accounted for 1.5%. About 82% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. Cape Verde annually runs a high trade deficit, financed by foreign aid and remittances from emigrants; remittances supplement GDP by more than 20%. Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Prospects for 2004 depend heavily on the maintenance of aid flows, tourism, remittances, and the momentum of the government's development program.

GDP:

purchasing power parity - $600 million (2002 est.)

GDP - composition by sector:

agriculture: 10%
industry: 16.5%
services: 62.8% (2004 est.)

Agriculture products:

bananas, corn, beans, sweet potatoes, sugarcane, coffee, peanuts; fish

Industries:

food and beverages, fish processing, shoes and garments, salt mining, ship repair

Transportation

Highways:

total: 1,100 km
paved: 858 km
unpaved: 242 km (1999 est.)

Ports and harbors:

Mindelo, Praia, Tarrafal

Merchant marine:

total: 4 ships (1,000 GRT or over) 5,395 GRT/6,614 DWT
foreign-owned: United Kingdom 1 (2003 est.)
by type: cargo 2, chemical tanker 1, passenger/cargo 1

Airports:

7
note: 3 airports are reported to be nonoperational (2003 est.)